Starbucks to pay more UK tax

LONDON Thu Dec 6, 2012 6:24pm GMT

A Starbucks logo is pictured in Frankfurt October 30, 2012. REUTERS/Ralph Orlowski

A Starbucks logo is pictured in Frankfurt October 30, 2012.

Credit: Reuters/Ralph Orlowski

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LONDON (Reuters) - Coffee chain Starbucks (SBUX.O) said it could pay up to 20 million pounds more in tax as it announced plans to change its accounting practises, surrendering to criticism from MPs, campaigners and the media.

A Reuters examination of Starbucks accounts published in October showed the company had reported 13 years of losses at its UK unit, even as it told investors the operation was profitable and among the best performing of its overseas markets.

"We are making a commitment that we will propose to pay a significant amount of corporation tax during 2013 and 2014 regardless of whether our company is profitable during these years," Starbucks UK managing director Kris Engskov said in the transcript of a speech sent to Reuters.

"We are still working through some of the calculations, but we believe we could pay or prepay somewhere in the range of 10 million pounds in each of the next two years in addition to the variety of taxes we already pay."

(Reporting by Sarah Young)

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Comments (1)
mgb500 wrote:
I bet that’s been earmarked for the MP’s pension fund – they need to look after themselves first before the unwashed peasants in the wild lands more than 2 miles outside Westminster…

Dec 06, 2012 4:50pm GMT  --  Report as abuse
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